Stock Analysis Report 12-20-18…TIMBER!!!

Stock Analysis Report 12-20-18…TIMBER!!!
December 20 15:10 2018 Print This Article

Timber is a term for wood that has been cut down, in one form or another. Lumberjacks traditionally shout the word as a warning that a tree has been cut down and is about to fall, for safety purposes.

I’m now sounding alarm for safety purposes in the Equity Markets. Even told some folks at work that it was time they speak to the person overseeing their money to evaluate their portfolio.

Fears of slowing global economic growth, interest rates increasing and earnings have all weighed on Wall Street in recent months, putting the
Dow and S&P 500 on track for their biggest December loss since the Great Depression and S&P 500 on track for its worst annual performance since 2008.


The December Fed meeting was yesterday and the equity markets did not like what it heard. The Fed raised rates by 0.25% and cut its expected 2019 rate hikes from three to two. However, the Fed wasn’t dovish and towards the end of the day, the markets fell hard. As a result the Market’s expectation for an increased in interest rates in March have increased.

Source

This week, the S&P 500 finally closed below the February lows with the Fed interest rates meeting not helping the matter.

That level was significant because in my opinion, it was the last thing holding up the Markets. The price action breakdown thus increases the probability of further downside risks. The next level I’m watching is 2330.

I just hope the folks I told at work take my advice and evaluate their portfolio because crunch time has arrived.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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rollandthomas
rollandthomas

I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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